In capital-intensive industries, the risk lies in the supply chain and the soil.
Automated classification ensures you never miss a critical report or a fragile contract.
Relying on a single supplier who can terminate at will. If a key contract allows "termination for convenience", the supplier can hold you hostage for price increases immediately post-close.
Junior lawyers skim supplier contracts, often missing the "termination" subsection buried in the appendices.
Colabra's AI extraction scans every supplier agreement for "termination for convenience" and "change of control" provisions. We convert static PDFs into a searchable risk register, ensuring supply lines are locked in.
Strict liability for historical contamination (CERCLA). You inherit the cleanup costs of every previous owner.
A messy data room where Phase I reports are hidden inside "real estate" folders, mixed with leases and floor plans.
Colabra's document classification automatically sorts EHS (environmental, health, and safety) documents into a dedicated domain. We separate the noise from the critical Phase I/II reports so your environmental consultants can start their review on Day 1.
Operating without valid permits can shut down the factory.
Manually checking expiration dates on hundreds of scanned permits.
Colabra extracts dates and renewal terms from permit documents. Our gap analysis highlights missing permit schedules, ensuring you know exactly which licences need immediate renewal post-close.
Case study: Caterpillar's acquisition of ERA Mining
Caterpillar acquired ERA Mining for ~$650M. Months later, they uncovered massive accounting misconduct involving discrepancies between physical inventory and accounting records. Caterpillar took a $580 million write-down, wiping out nearly the entire deal value.
Our reconciliation lens matches physical inventory sub-ledgers against sales history to identify "zombie inventory" and accounting gaps that manual spot-checks miss.